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  • ClimateChange

    A.Xepapadeas

    What isClimateChange?

    EconomicConsiderations

    Stabilization

    Modeling andPolicy Design:IAMs

    Open Issues

    ConcludingRemarks

    Environmental,Economic, andSocial Impactsof ClimateChange inGreece

    References

    The Economics of Climate Change

    Anastasios Xepapadeas

    Athens University of Economics and Business and Beijer Fellow

    Athens, June 2016

    A. Xepapadeas (AUEB) Climate Change Athens, June 2016 1 / 84

  • ClimateChange

    A.Xepapadeas

    What isClimateChange?

    EconomicConsiderations

    Stabilization

    Modeling andPolicy Design:IAMs

    Open Issues

    ConcludingRemarks

    Environmental,Economic, andSocial Impactsof ClimateChange inGreece

    References

    What is Climate Change? Evidence and Mechanisms

    Earths average temperature has risen by 1.4F over thepast century, and is projected to rise another 2 to 11.5Fover the next hundred years. Small changes in the averagetemperature of the planet can translate to large andpotentially dangerous shifts in climate and weather.

    A. Xepapadeas (AUEB) Climate Change Athens, June 2016 2 / 84

  • ClimateChange

    A.Xepapadeas

    What isClimateChange?

    EconomicConsiderations

    Stabilization

    Modeling andPolicy Design:IAMs

    Open Issues

    ConcludingRemarks

    Environmental,Economic, andSocial Impactsof ClimateChange inGreece

    References

    What is Climate Change? Evidence and Mechanisms

    A. Xepapadeas (AUEB) Climate Change Athens, June 2016 3 / 84

  • ClimateChange

    A.Xepapadeas

    What isClimateChange?

    EconomicConsiderations

    Stabilization

    Modeling andPolicy Design:IAMs

    Open Issues

    ConcludingRemarks

    Environmental,Economic, andSocial Impactsof ClimateChange inGreece

    References

    What is Climate Change? Evidence and Mechanisms

    People, through their consumption and productiondecisions, emit greenhouse gasses (GHGs). Carbon dioxideis especially important, accounting for aroundthree-quarters of the human-generated global warmingeect; other relevant GHGs include methane, nitrousoxide, and hydrouorocarbons (HFCs).

    These ows accumulate into stocks of GHGs in theatmosphere. It is overall stocks of GHGs that matter, andnot their place of origin. The rate at which stockaccumulation occurs depends on the "carbon cycle,"including the earths absorptive capabilities and otherfeedback eects.

    A. Xepapadeas (AUEB) Climate Change Athens, June 2016 4 / 84

  • ClimateChange

    A.Xepapadeas

    What isClimateChange?

    EconomicConsiderations

    Stabilization

    Modeling andPolicy Design:IAMs

    Open Issues

    ConcludingRemarks

    Environmental,Economic, andSocial Impactsof ClimateChange inGreece

    References

    What is Climate Change? Evidence and Mechanisms

    People, through their consumption and productiondecisions, emit greenhouse gasses (GHGs). Carbon dioxideis especially important, accounting for aroundthree-quarters of the human-generated global warmingeect; other relevant GHGs include methane, nitrousoxide, and hydrouorocarbons (HFCs).

    These ows accumulate into stocks of GHGs in theatmosphere. It is overall stocks of GHGs that matter, andnot their place of origin. The rate at which stockaccumulation occurs depends on the "carbon cycle,"including the earths absorptive capabilities and otherfeedback eects.

    A. Xepapadeas (AUEB) Climate Change Athens, June 2016 4 / 84

  • ClimateChange

    A.Xepapadeas

    What isClimateChange?

    EconomicConsiderations

    Stabilization

    Modeling andPolicy Design:IAMs

    Open Issues

    ConcludingRemarks

    Environmental,Economic, andSocial Impactsof ClimateChange inGreece

    References

    What is Climate Change? Evidence and Mechanisms

    The stock of GHGs in the atmosphere traps heat andresults in global warming: how much depends on "climatesensitivity. The process of global warming results inclimate change.

    Many places have seen changes in rainfall, resulting inmore oods, droughts, or intense rain, as well as morefrequent and severe heat waves. The planets oceans andglaciers have also experienced some big changes - oceansare warming and becoming more acidic, ice caps aremelting, and sea levels are rising.

    Climate change aects people, species, and plants in avariety of complex ways, most notably via water in someshape or form: storms, oods, droughts, sea-level rise.These changes will potentially transform the physical andhuman geography of the planet, aecting where and howwe live our lives. Each of these ve links involvesconsiderable uncertainty.

    A. Xepapadeas (AUEB) Climate Change Athens, June 2016 5 / 84

  • ClimateChange

    A.Xepapadeas

    What isClimateChange?

    EconomicConsiderations

    Stabilization

    Modeling andPolicy Design:IAMs

    Open Issues

    ConcludingRemarks

    Environmental,Economic, andSocial Impactsof ClimateChange inGreece

    References

    What is Climate Change? Evidence and Mechanisms

    The stock of GHGs in the atmosphere traps heat andresults in global warming: how much depends on "climatesensitivity. The process of global warming results inclimate change.

    Many places have seen changes in rainfall, resulting inmore oods, droughts, or intense rain, as well as morefrequent and severe heat waves. The planets oceans andglaciers have also experienced some big changes - oceansare warming and becoming more acidic, ice caps aremelting, and sea levels are rising.

    Climate change aects people, species, and plants in avariety of complex ways, most notably via water in someshape or form: storms, oods, droughts, sea-level rise.These changes will potentially transform the physical andhuman geography of the planet, aecting where and howwe live our lives. Each of these ve links involvesconsiderable uncertainty.

    A. Xepapadeas (AUEB) Climate Change Athens, June 2016 5 / 84

  • ClimateChange

    A.Xepapadeas

    What isClimateChange?

    EconomicConsiderations

    Stabilization

    Modeling andPolicy Design:IAMs

    Open Issues

    ConcludingRemarks

    Environmental,Economic, andSocial Impactsof ClimateChange inGreece

    References

    What is Climate Change? Evidence and Mechanisms

    The stock of GHGs in the atmosphere traps heat andresults in global warming: how much depends on "climatesensitivity. The process of global warming results inclimate change.

    Many places have seen changes in rainfall, resulting inmore oods, droughts, or intense rain, as well as morefrequent and severe heat waves. The planets oceans andglaciers have also experienced some big changes - oceansare warming and becoming more acidic, ice caps aremelting, and sea levels are rising.

    Climate change aects people, species, and plants in avariety of complex ways, most notably via water in someshape or form: storms, oods, droughts, sea-level rise.These changes will potentially transform the physical andhuman geography of the planet, aecting where and howwe live our lives. Each of these ve links involvesconsiderable uncertainty.

    A. Xepapadeas (AUEB) Climate Change Athens, June 2016 5 / 84

  • ClimateChange

    A.Xepapadeas

    What isClimateChange?

    EconomicConsiderations

    Stabilization

    Modeling andPolicy Design:IAMs

    Open Issues

    ConcludingRemarks

    Environmental,Economic, andSocial Impactsof ClimateChange inGreece

    References

    What is Climate Change? Evidence and Mechanisms

    A. Xepapadeas (AUEB) Climate Change Athens, June 2016 6 / 84

  • ClimateChange

    A.Xepapadeas

    What isClimateChange?

    EconomicConsiderations

    Stabilization

    Modeling andPolicy Design:IAMs

    Open Issues

    ConcludingRemarks

    Environmental,Economic, andSocial Impactsof ClimateChange inGreece

    References

    What is Climate Change? Evidence and Mechanisms

    A. Xepapadeas (AUEB) Climate Change Athens, June 2016 7 / 84

  • ClimateChange

    A.Xepapadeas

    What isClimateChange?

    EconomicConsiderations

    Stabilization

    Modeling andPolicy Design:IAMs

    Open Issues

    ConcludingRemarks

    Environmental,Economic, andSocial Impactsof ClimateChange inGreece

    References

    What is Climate Change? Evidence and Mechanisms

    A. Xepapadeas (AUEB) Climate Change Athens, June 2016 8 / 84

  • ClimateChange

    A.Xepapadeas

    What isClimateChange?

    EconomicConsiderations

    Stabilization

    Modeling andPolicy Design:IAMs

    Open Issues

    ConcludingRemarks

    Environmental,Economic, andSocial Impactsof ClimateChange inGreece

    References

    What is Climate Change? Evidence and Mechanisms

    Source: Environmental Protection Agency (EPA),http://www.epa.gov/climatechange/

    A. Xepapadeas (AUEB) Climate Change Athens, June 2016 9 / 84

  • ClimateChange

    A.Xepapadeas

    What isClimateChange?

    EconomicConsiderations

    Stabilization

    Modeling andPolicy Design:IAMs

    Open Issues

    ConcludingRemarks

    Environmental,Economic, andSocial Impactsof ClimateChange inGreece

    References

    What is Climate Change? Evidence and Mechanisms

    A. Xepapadeas (AUEB) Climate Change Athens, June 2016 10 / 84

  • ClimateChange

    A.Xepapadeas

    What isClimateChange?

    EconomicConsiderations

    Stabilization

    Modeling andPolicy Design:IAMs

    Open Issues

    ConcludingRemarks

    Environmental,Economic, andSocial Impactsof ClimateChange inGreece

    References

    What is Climate Change? Evidence and Mechanisms

    A. Xepapadeas (AUEB) Climate Change Athens, June 2016 11 / 84

  • ClimateChange

    A.Xepapadeas